TotalEnergies Inks 15-Year Deal to Supply LNG to Dominican Republic

Core Viewpoint - TotalEnergies SE has signed a 15-year Heads of Agreement with Energia Natural Dominicana for the delivery of 400,000 tons of liquefied natural gas (LNG) annually starting in mid-2027, which will enhance the Dominican Republic's clean energy capacity [1][2]. Company Overview - TotalEnergies has an integrated position across the LNG value chain, including production, transportation, and access to over 20 million tons per annum (Mtpa) of regasification capacity in Europe [4]. - The company's global LNG portfolio is projected to reach 40 Mtpa in 2024, supported by interests in liquefaction plants worldwide and a large fleet of LNG tankers [5]. - TotalEnergies aims to increase the share of natural gas in its sales mix to nearly 50% by 2030, while also focusing on reducing carbon emissions and eliminating methane emissions associated with the gas value chain [6]. Market Dynamics - Global demand for LNG is expected to rise by approximately 60% by 2040, driven by economic growth in Asia and efforts to reduce emissions in heavy industries and transportation [7]. - The rising demand for LNG is likely to benefit companies like Cheniere Energy and BP, which are key players in the global LNG supply [8]. Competitor Insights - Cheniere Energy is expanding its Corpus Christi LNG plant in Texas, adding 3 Mtpa to its capacity, which will total 18 Mtpa [9]. - The Zacks Consensus Estimate for Cheniere's 2025 sales indicates a year-over-year increase of 20.2%, with an average earnings surprise of 74.4% over the past four quarters [10]. - BP aims to achieve a 25 Mtpa LNG portfolio by 2025, with a long-term earnings growth rate of 7.86% and a projected 24% year-over-year increase in 2025 sales [11]. Stock Performance - In the past month, TotalEnergies shares have decreased by 9.5%, compared to a 12.8% decline in the industry [13].